You are on page 1of 2

Topic: Automobile Industry

S. K. PATEL INSTITUTE OF MANAGEMENT & COMPUTER STUDIES

SUBMITTED TO: SUBMITTED BY: Kalpesh G. Prajapati

The first car ran on India's roads in 1897. Until the 1930s, cars were imported directly, but in very small numbers. An embryonic automotive industry emerged in India in the 1940s. Hindustan was launched in 1942, longtime competitor Premier in 1944. They built GM and Fiat products respectively. Mahindra & Mahindra was established by two brothers in 1945 and began assembly of Jeep CJ-3A utility vehicles. Following the independence, in 1947, the Government of India and the private sector launched efforts to create an automotive component manufacturing industry to supply to the automobile industry. In 1953 an import substitution programme was launched, and the import of fully built-up cars began to be impeded. The Hindustan Ambassador dominated India's automotive market from the 1960s until the mid-80s The growth was relatively slow in the 1950s and 1960s due to nationalisation and the license raj which hampered the Indian private sector. Total restrictions for import of vehicles was set and after 1970 the automotive industry started to grow. But the growth was mainly driven by tractors, commercial vehicles and scooters. Cars were still a major luxury item. In the 1970s price controls were finally lifted, inserting a competitive element into the automobile market.

By

the

1980s,

the

automobile

market

was

still

dominated

by Hindustan and Premier, who sold superannuated products in fairly limited numbers.[20] During the eighties, a few competitors began to arrive on the scene. Suzuki and Toyota of Japan and Hyundai of South Korea, were allowed to invest in the Indian market ultimately leading to the establishment of an automotive industry in India. Maruti Suzuki was the first, and the most successful of these new entries, and in part the result of government policies to promote the automotive industry beginning in the 1980. consumer began to multiply in the nineties, whereas before there had usually only been one option in each price As India began to liberalise their automobile market in 1991, a number of foreign firms also initiated joint ventures with existing Indian companies. The variety of options available to the class. The Premier Padmini was the Ambassador's only true competitor Exports were slow to grow. Sales of small numbers of vehicles to tertiary markets and neighbouring countries began early, and in 1987 Maruti Suzuki shipped 480 cars to Europe (Hungary).

After some growth in the mid-nineties, exports once again began to drop as the outmoded platforms handed down to Indian manufacturers by multinationals were not competitive.

This was not to last, and today India manufactures low-priced cars for markets across the globe. As of 18 March 2013 global brands such as Proton Holdings, PSA Group, and Geely Holding Group are shelving plans for India due to the global economic crisis.